Beijing Manufacturing Company uses perpetual inventory method.Below are the purchases and issues (sent to production) of direct material inventory during April 2020.

A) Prepare two INVENTORY CARDs for April,

1. if the Beijing Company uses Weighted Average Method (WAM) (round to two digits).

2. if the Beijing Company uses First-In-First-Out (FIFO).  

B) What are the “COST OF DIRECT MATERIAL USED” and the “COST OF ENDING INVENTORY” figures under the both methods?

Delph Company uses a job-order costing system and has two manufacturing departments—Molding and Fabrication. The company provided the following estimates at the beginning of the year: Molding Fabrication Total Machine-hours 24,000 33,000 57,000 Fixed manufacturing overhead cost $ 780,000 $ 240,000 $ 1,020,000 Variable manufacturing overhead cost per machine-hour $ 4.00 $ 1.50 During the year, the company had no beginning or ending inventories and it started, completed, and sold only two jobs—Job D-70 and Job C-200. It provided the following information related to those two jobs: Job D-70 Molding Fabrication Total Direct materials cost $ 370,000 $ 320,000 $ 690,000 Direct labor cost $ 220,000 $ 140,000 $ 360,000 Machine-hours 14,000 10,000 24,000 Job C-200 Molding Fabrication Total Direct materials cost $ 300,000 $ 220,000 $ 520,000 Direct labor cost $ 160,000 $ 260,000 $ 420,000 Machine-hours 10,000 23,000 33,000 Delph had no underapplied or overapplied manufacturing overhead during the year. rev: 07_21_2020_QC_CS-217627 Required: 1. Assume Delph uses departmental predetermined overhead rates based on machine-hours. a. Compute the departmental predetermined overhead rates. b. Compute the total manufacturing cost assigned to Job D-70 and Job C-200. c. If Delph establishes bid prices that are 150% of total manufacturing cost, what bid prices would it have established for Job D-70 and Job C-200? d. What is Delph’s cost of goods sold for the year?

Fields Company has two manufacturing departments, forming and painting. The company uses the weighted-average method of process costing. At the beginning of the month, the forming department has 34,000 units in inventory, 75% complete as to materials and 25% complete as to conversion costs. The beginning inventory cost of $78,100 consisted of $55,600 of direct materials costs and $22,500 of conversion costs.

During the month, the forming department started 480,000 units. At the end of the month, the forming department had 40,000 units in ending inventory, 80% complete as to materials and 30% complete as to conversion. Units completed in the forming department are transferred to the painting department.

Cost information for the forming department follows.

1. Calculate the equivalent units of production for the forming department.
2. Calculate the costs per equivalent unit of production for the forming department.
3. Using the weighted-average method, assign costs to the forming department’s output—specifically, its units transferred to painting and its ending work in process inventory.

1)

2)

3)

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Solution

The Fields Company has two manufacturing departments, forming and painting. The company uses the weighted-average method of process costing. At the beginning of the month, the forming department has 37,000 units in inventory, 80% complete as to materials and 20% complete as to conversion costs. The beginning inventory cost of $84,100 consisted of $59,200 of direct materials costs and $24,900 of conversion costs.
During the month, the forming department started 540,000 units. At the end of the month, the forming department had 40,000 units in ending inventory, 80% complete as to materials and 30% complete as to conversion. Units completed in the forming department are transferred to the painting department.
Cost information for the forming department is as follows:

Part 1. Calculate the equivalent units of production for the forming department.

Part 2. Calculate the costs per equivalent unit of production for the forming department.

Part 3. Using the weighted-average method, assign costs to the forming department’s output—specifically, its units transferred to painting and its ending work in process inventory.

The Fields Company has two manufacturing departments, forming and painting. The company uses the weighted-average method of process costing. At the beginning of the month, the forming department has 30,000 units in inventory, 65% complete as to materials and 35% complete as to conversion costs. The beginning inventory cost of $61,000 consisted of $45,000 of direct materials costs and $16,000 of conversion costs.

During the month, the forming department started 300,000 units. At the end of the month, the forming department had 35,000 units in ending inventory, 90% complete as to materials and 20% complete as to conversion. Units completed in the forming department are transferred to the painting department.

Cost information for the forming department is as follows:

Calculate the equivalent units of production for the forming department.

Calculate the costs per equivalent unit of production for the forming department.

Using the weighted-average method, assign costs to the forming department’s output—specifically, its units transferred to painting and its ending work in process inventory.

As of the end of June, the job cost sheets at Racing Wheels, Inc., show the following total costs accumulated on three custom jobs.

Job 102 was started in production in May, and the following costs were assigned to it in May: direct materials, $9,000; direct labor, $3,600; and overhead, $1,512. Jobs 103 and 104 were started in June. Overhead cost is applied with a predetermined rate based on direct labor cost. Jobs 102 and 103 were finished in June, and Job 104 is expected to be finished in July. No raw materials were used indirectly in June. Using this information, answer the following questions. (Assume this company’s predetermined overhead rate did not change across these months.)

1&2. Complete the table below to calculate the cost of the raw materials requisitioned and direct labor cost incurred during June for each of the three jobs?
3. Using the accumulated costs of the jobs, what predetermined overhead rate is used?
4. How much total cost is transferred to finished goods during June?

How much total cost is transferred to finished goods during June?

Leslie Sporting Goods is a locally owned store that specializes in printing team jerseys. The majority of its business comes from orders for various local teams and organizations. While Leslie’s prints everything from bowling team jerseys to fraternity/sorority apparel to special event shirts, summer league baseball and softball team jerseys are the company’s biggest source of revenue.

A portion of Leslie’s operating information for the company’s last year follows:

Required:
3. Using the high-low method, calculate the store’s total fixed operating costs and variable operating cost per jersey.

Fixed cost -

Variable cost per jersey -
4. Using the high-low method results, calculate the store’s expected operating cost if it printed 475 jerseys.

Total Cost -
5. Perform a least-squares regression analysis on Leslie’s data.

Intercept -

X Variable 1 -
6. Using the regression output, create a linear equation (y = a + bx) for estimating Leslie’s operating costs.

Total cost = ________+ _____ Total number of jerseys
7. Using the least-squares regression results, calculate the store’s expected operating cost if it prints 635 jerseys.

Total cost -